Part-payments can be made only after completion of 12 months. For part payments between 13 to 24 months, a fee of 4% is applicable on the part-payment amount. 3% is applicable on payments between 25 to 36 months. 2% is applicable post 36 months

Part-payments are allowed only twice during the loan tenure and once a year, and the amount cannot exceed 25% of the principal outstanding

Best Personal Loan Offers in 2019

If you are looking for a personal loan, compare various banks that provide credit at attractive interest rates, easy EMI options, and low processing fees. Check for secured as well as unsecured loan options and get instant access to funds and finance your immediate needs.

HDBFS Personal Loan - Best for Special Offers

Key Highlights

The processing of the loan is quick and speedy, and no security or guarantor is required to avail the loan.

The repayment tenures are also quite flexible, ranging from 12 months to 60 months.

Interest Rate

EMI

Foreclosure/Prepayment Charges

Repayment

14.99%

Rs.2,378

2% to 4% of the principal outstanding amount depending on when the applicant opts for foreclosure

Rs.1,42,708

*The calculation of EMIs and total amount payable is done based on assuming the loan amount at Rs.1 Lakh and for the Tenure of 5 years. Please note that interest rates vary depending on the income of the applicant and the amount borrowed.

Personal Loan Eligibility

The following are the eligibility criteria for personal loans in India:

Criteria

Salaried

Self-Employed

Age

21 years to 60 years

22 years to 55 years

Net Monthly Income

Rs.15,000

Rs.25,000

CIBIL Score

Above 750

Above 750

Minimum Loan Amount

Rs.50,000

Rs.50,000

Maximum Loan Amount

Rs.25 lakh

Rs.30 lakh

Documents Required for Personal Loans

The following are the basic documents required for personal loans in India:

Requirements

Salaried Individuals

Self Employed

Proof of Identity

Passport, Voter’s ID, Driving License or PAN Card

Passport, Voter’s ID, Driving License or PAN Card

Proof of Residence

Passport or utility bills

Passport or utility bills

Proof of Income

Bank statement of salary account for the past two years

Audited financial statement of the past two years

Use Bankbazaar Personal Loan EMI Calculator to Calculate EMI

Thanks to advancements in technology, checking your personal loan EMIs is now as easy as it gets. Almost all banks that offer personal loans have an EMI calculator facility that enables customers to check their EMIs in a smooth and hassle-free manner. BankBazaar’s EMI calculator is easy to use and provides accurate results.

To calculate your EMIs on BankBazaar.com, all you have to do is enter the loan amount, the tenure, the interest rate, the processing fees, and check the applicable box (Yes or No) if you wish to make prepayments. Then, click on the ‘Calculate’ button and your EMI amount will be generated instantly. You will also be able to view the breakup of the EMIs – how much of the amount will go towards principal repayment and how much towards interest. In addition, you can also view the amortisation table which will show you how much you will be repaying at the end of each year.

Tips for Successful Personal Loan Application

The following are a few important tips for a successful personal loan application:

Assess the need for your personal loan: You will need to be clear about the need for your personal loan. You can take it for funding your wedding arrangements, paying your hospital bills, buying medicines, etc. Before you apply for the loan, you will need to assess if you really want the loan. If you are planning to take a personal loan for investing in shares or other financial instruments, then it may not be a great idea.

Do proper research to get the best rate for your personal loan: You can do online research by visiting third-party financial websites or by going to the banks' official websites to compare different interest rates for personal loans. This will help you get a proper idea about the costs that you will incur.

Check your credit history: Before you proceed to apply for a personal loan from any bank or NBFC, you will need to assess your credit history thoroughly. This will give you an idea about the loan amount that you will receive. You need to make sure your credit history looks decent before you apply for a loan.

Review the fine print on your loan document carefully: Make sure you read the personal loan details carefully as this will give you a clear understanding of the commitment you are making in terms of the repayment.

Choose your personal loan tenure by assessing your repayment ability: A personal loan typically ranges from 1 to 5 years. You can fix the loan tenure according to your loan amount, your other monthly expenses, and the income that you earn on a monthly basis.

Choose an affordable interest rate: Ensure that you choose an economical interest rate for your personal loan. With a low-interest rate, your loan expenses will be low and you can repay it without any hassle. You will also avoid any defaults on loans.

Check your EMIs properly: You will need to compute your EMIs before you fix your personal loan amount. This will help you plan your expenses efficiently. You can multiply this loan EMI with your loan tenure to find out your precise loan amount. You can then choose the lowest loan amount.

Compare the processing fee: Most banks and NBFCs charge a processing fee for a personal loan. You can compare this fee and then decide which loan product you want.

Select fixed or variable interest rate according to your preference: When you choose fixed interest rate, your loan payment will remain fixed throughout the loan tenure. When you select variable interest rate, your loan payment will depend on the rate. Hence, the loan payment will increase if the rate increases and the loan payment will reduce if the rate reduces.

Do's

Don'ts

Do proper research before you apply for a personal loan

Do not sign your loan documents without understanding every point

Do read the fine print carefully

Do not make multiple inquiries regarding personal loans from different banks

Do save your money carefully when you are repaying

Do not take a personal loan without any serious purpose

Do pay your loan installment promptly every single time

Do not be in a hurry to end your loan comparison process

Do evaluate your credit score thoroughly

Do not forget to pay your loan installments

Do apply for an affordable loan amount

Do not accept bad personal loan products

How to Improve your Chances of Getting a Personal Loan?

Different lenders have different requirements for customers who seek personal loans. If you are finding it hard to get a personal loan, here are a few tips to improve your chances:

Credit Clean-up: One of the main factors taken into consideration by lenders is your credit score. Getting a personal loan is easier with a high credit score. If your score is low, you must check your reports to see if there are any errors. Sometimes, simple errors could have an adverse effect on your scores, and if you find any of these, you must report them to CIBIL.

Rebalancing your income and debts: Lenders ask for proof of income when you apply for personal loans in order to ascertain your debt-to-income ratio. Consider the sale of liquid assets like stocks or earning more through a part-time job to increase your annual income. Doing so will increase your debt-to-income ratio and increase your chances of getting a personal loan.

Consider Co-signers/Guarantors: If you are finding it hard to get a personal loan on your own accord, you can apply for one by adding a co-signer or guarantor. The person you choose as a guarantor must have a good credit score and although their main aim is to guarantee that you will repay the loan, they will also be liable to repay the loan themselves if you are unable to do so. Picking an individual with a credit score over 750 will considerably increase your chances of getting a personal loan.

Limit Your Borrowing: It can be risky to ask for more money than you require to meet your financial targets. Make sure that you calculate how much you need and apply only for that specific amount.

Choose the Right Lender: Every lender has their own requirements when it comes to credit scores and income. When looking for personal loans, pick a lender whose eligibility criteria you meet and apply accordingly. The problem with applying with multiple lenders is that each of them will check your credit score, and each time your full credit report is pulled out, your credit score drops, albeit marginally.

Resource Center

Personal Loan FAQs

Personal loan can be repaid in equal monthly instalments or EMI. You can provide a post-dated cheque or can give a standing order with your bank or through electronic transfer.

What is an EMI?

EMI or Equal Monthly Instalment is the amount that a borrower pays each month towards an outstanding loan to clear off the debt within a specific timeframe. EMI includes principal and interest.

Is part- prepayment allowed on my personal loan?

Personal loans can be prepaid in parts or as a whole at any stage. Some banks may charge a prepayment penalty for the same. Some banks do not allow part-prepayment. So, check all the documents before finalising on the loan with the bank.

Will I need a guarantor to take a personal loan?

No, you will not need a guarantor to take a personal loan.

Can I club my income with my spouse to take a personal loan?

Yes, you can club the income of your spouse to boost your eligibility to avail a personal loan.

How will I be eligible for a relationship discount?

If you have been a customer for a particular bank for a while, then the bank might reduce the personal loan interest rate or other such charges. Some banks will also provide you additional services.

Do I need to open a bank account to service my personal loan?

If you do not have an account with the bank, it is not mandatory to apply for one. But, if you apply for a loan with your existing banker, then you will be eligible for a relationship discount.

How do I stop executives from calling me to let me know about other loans?

Some banks let you register yourself for ‘Do Not Disturb'. If you opt for this, the executives will not disturb you with cold sales calls.

What is the best way to apply for personal Loan?

A: The best way to apply for an personal loan is by using the online loan application tool at BankBazaar.com The tool can be accessed on this page allowing users to choose personal loan from various banks and NBFCS as per their selection.

Can I Track my Loan Application?

A: BankBazaar.com offers it's loan applicants an active tracking tool through both email and SMS allowing them to track daily updates of their loan application.

Is my Data Safe with BankBazaar.com?

A: BankBazaar.com is India's premier financial marketplace and takes utmost care in ensuring that all data is sent in electronic form with high level of encryption. BankBazaar.com does not share data with any third party other than the financial institution.

Is BankBazaar.com Personal Loan Tool Free?

A: Yes BankBazaar.com personal loan calculator tool is totally free and the portal does not charge any fee for its services from users.

A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.

News About Personal Loan or Enjoy it on the go

Muthoot Finance set to expand personal operations

Muthoot Finance Ltd., based out of Kerala, is all set to expand its personal loan operations in the country. The company will open 50 more locations all across the country by the end of this year. Muthoot Finance set foot in the personal loan segment in 2018 and is currently operational in 16 cities.

As of now, the company has a strong focus on the salaried personal loan segment in Delhi and NCR region. With this unique offering, Muthoot Finance provides salaried applicants with personal loans that can be obtained with minimum documentation. Their personal loans are disbursed within 48 hours. This scheme will let individuals borrow loans of Rs.1 lakh to Rs.1o lakh at an interest rate of 13.5% to 23% per annum. The scheme is already operational in the Delhi and NCR region is set to be introduced in the northern part of the country.

22 May 2019

Personal loan benefits for government pensioners

State Bank of India (SBI) and Punjab National Bank (PNB) are offering personal loans to government and defence pensioners. To get the benefits of these loans, the pension account must be maintained with them.

The applicant must not be more than 76 years old. Some of the benefits include low processing fee (no processing fee for defence personnel), fast loan processing, and zero hidden charges. Applicants also get the option of prepaying their loans to reduce their interest costs.

From SBI, retired employees can take loans of up to Rs.14 lakh. The minimum loan amount is Rs.25,000.

For SBI, the repayment period is 60 months if the applicant is 72 years old or younger. For applicants between 72 to 74 years of age, the tenure is 48 months. For applicants between 74 to 76 years of age, it is 24 months.

For retired defence personnel, the tenure is 84 months up to the age of 56 years. For ages 56 years to 72 years, the tenure is 60 months. Between ages 72 to 74 years, the tenure is 48 months, and between ages 74 to 76 years, it is 24 months.

For PNB, the minimum loan amount is Rs.25,000 and the maximum is Rs.3 lakh. The maximum tenure is 60 months. For pensioners above the age of 75 years, it is 24 months.

SBI charges a prepayment fee of 3% of the amount prepaid. PNB charges documentation fees of up to Rs.450.

25 April 2019

MSME loans jump 2.5 times in the last 5 years

The outstanding loans given by Indian Lenders to the micro, small and medium enterprises (MSMEs) expanded almost two and half time in the last 5 years till 2018 according to credit information company TansUnion CIBIL. The company also warned about debt build-ups that could lead to stress in the quality of assets.

At the end of 2018, the outstanding credit to MSMEs grew at a rate of 19.6% to Rs.25.2 lakh crore from Rs.10.4 lakh crore in 2013. Additionally, the percentage of consolidated non-performing assets increased from 7.3% to 9%. Public sector banks were the largest lenders for MSMESs in the growth period. However, their loan exposure decreased to 39% from 58% after the central bank’s lending restrictions on banks with bad debt. The growth must be monitored as it this rapid acceleration in debt build-up may prove to be a stressor, opined TransUnion CIBIL managing director Satish Pillai.

19 April 2019

Individuals can avail a personal loan for a road trip

Meeting new people, trying various food joints, exploring different places, taking a break from a daily routine, and taking the car out are the main reasons why people go on a road trip. Availing a personal loan is one of the easiest ways of funding a road trip.

Since a personal loan is a multi-purpose loan, it can be used for the expenses that have incurred because of a road trip. Individuals can apply for a personal loan at banks or at Non-banking Financial Companies (NBFCs). The loan amount is usually disbursed within hours or a few days. The monthly repayment schedule can also be chosen by the individual who is availing the loan. Banks and NBFCs will do the necessary checks such as checking the credit score before deciding on the interest rates of the personal loan. Availing a personal loan requires minimum documentation and is a hassle-free process. However, individuals must have a good credit score, choose the tenure, submit the necessary documents, compare various personal loans online, check the amount of funds that are available, and choose their budget before applying for a personal loan.

16 April 2019

Taking loans from SBI to become easier in smaller regions

People residing in remote villages of the country who want to grow their business will now have easier access to loans from the State Bank of India. SBI has joined hands with Paisalo Digital Limited to offer loans to empower MSME (Micro, Small, and Medium Enterprises) segment, agriculture sector, and small businesses. According to the agreement, the loan amount will range between Rs.10,000 to Rs.2 lakh. Paisalo is expecting to disburse over 2 lakh loan applications this financial year through their digital platform.

Paisalo is an NBFC registered with the State Bank of India. The company signed its first co-origination deal with SBI to introduce a platform for the last-mile customers. With this agreement, the companies will disburse loans to even first-time last-mile borrowers. It is a first-of-its-kind deal signed by SBI which will boost the priority sector lending space.

11 April 2019

Personal loans emerging as instant finance

Personal loans are becoming a popular instant finance option for Indians. People can meet urgent financial needs by borrowing the relevant amount. Personal loans are especially helpful in expenses related to weddings, travels, etc. Personal loans have a flexible tenure due to which, borrowers find it very convenient in nature. According to data released by the Reserve Bank of India, personal loans had the lion's share of 96% of new bank loans in FY2018.

Personal loans are popular as they are unsecured in nature. Borrowers do not have to pledge anything to avail the loan unlike home loans and car loans. Another reason for its popularity is the flexibility in usage. Personal loans can be used for a variety of purposes. Such loans are also easy to avail as many lenders offer pre-approved loans at low interest rates.

10 April 2019

Reasons for rejection of personal loan applications

Personal loans can come in handy for individuals during a financial emergency. Availing personal loans can help for various circumstances such as travel expenditure, emergency funds, etc. However, banks and non-banking financial institutions (NBFCs) have certain requirements that individuals must meet when they apply for a personal loan. In case individuals don’t meet these requirements, their applications will get rejected.

Some of the main requirements that banks and NBFCs look into are the documents that have been submitted, the eligibility criteria, the credit score, and the number of applications that the individual has made. Self-employed and salaried individuals have to submit different documents when they apply for a personal loan. It is important that all the required documents are submitted so that the application does not get rejected. Banks and NBFCs have a minimum and maximum age limit for individuals when they apply a personal. This eligibility criterion must be met by individuals in case they want to avail a personal loan. Another important criterion that banks and NBFCs look into is the individual’s credit score. A good credit score can help in availing a personal loan easily, while a bad credit score can lead to a rejection.

9 April 2019

Changes affected to home, and personal, and auto loans due to repo rates

The repo rate in India has had another cut from the Reserve Bank of India (RBI). The repo rate is 6% at the moment, and this would help in making the cost of borrowing cheaper. Usually, the loans are low-cost when there is cut in repo rates. However, a number of changes have been made by RBI that will have an impact on borrowing as well as the interest rates of loans.

The RBI has set up a committee that will determine the state of housing finance securitisation in the country. This would help in bringing standard asset securitisation practices that will come with many benefits. The RBI has also decided to have further meetings with stakeholders so that transmission rates can have an effective mechanism. However, it must be noted that lenders determine the interest rates for vehicle, personal, and home loans based on the cost of funds. The interest rates that banks pay depositors must be lower than the interest rates that banks offer on loans. Therefore, banks are attractive because of the lower cost of funds.

5 April 2019

Artificial intelligence used by MoneyTap to personalise moneylending

MoneyTap is a fintech company that was launched in 2015. It is a digital lending app for instant personal loans starting at Rs.3,000 and going up to Rs.5 lakh. Launched in partnership with RBL Bank, an account with the partner bank is not required. The unsecured personal loans are offered at lower interest rates and allows users to apply for the next loan after closing the current one. With over 5 lakh instalments in a month, MoneyTap has grown substantially since its launch, with its presence now in 40 cities and plans to expand to 150 cities soon. Millennials who often require smaller amounts of money that are not offered by the bigger banks are the major target audience for digital lending apps. MoneyTap harnesses the power of a wide range of technology to handle the increasing demand. This ranges from AWS for data storage, Hibernate and JAVA for the backend, Python for machine learning and data, and HTML since the platform used is iOS and Android. Chatbots are also utilised for verification and connecting the credit bureau with the banking system. This helps to analyse the credit history of the applicant before final approval is given.

2 April 2019

5 common personal loan terms

Mentioned below are 5 common personal loan terms:

Eligibility: Banks and NBFCs have certain criteria that you have to meet if you want to take a personal loan. It is known as eligibility.

Credit score: It is an important requirement to avail a personal loan. A score of 700 and above is usually considered good for approval of personal loans. It represents your credit history and your repayment capabilities.

Interest: Interest is the amount lenders charge for allowing you to take the loans and using it according to your needs. It is a specific percentage of the principal amount. During repayment, you have to pay the principal amount along with the interest amount.

Processing Charges: Processing charges refer to the additional charges levied on the loan amount. It usually ranges between 1% and 2 %.

Charges for late payment: When you take a personal loan, you are required to pay back the amount in equated monthly instalments (EMI). Any delay in paying the EMIs can attract an ancillary charge called 'charges for late payment'. It is advisable to avoid such penalties by paying the EMIs on time, as failure to do so can increase the payment burden.

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Personal Loan Reviews

Taken my personal loan from Bajaj Finance. I purchased the loan 3 months back. The processing of getting the loan is easy and quick hence i have chosen the Bajaj Finance. The given interest rate is high which is 2.5Rs for every 100 Rs. I applied the loan amount of Rs. 1 lakh and they have sanctioned the amount of Rs. 91000 by deducting processing fee and other charges.

I took personal loan with Home credit recently, i am not happy with their service they have ask too much documentations and formality in getting loan., the loan amount they have given me was very less, the documents part i face many issue, even the rate of interest they have charged me up to 22% which is very high.

I took a personal loan from the Axis bank. The application process was good, The interest rate was nominal, they offered the loan an interest rate of 15.49% which i felt was high and the loan amount was sufficient for me , Overall it has been a quick loan process with the Axis bank and happy with their services. They need to consider reducing the interest rates as per market variations.

I had taken a personal loan from Kotak Mahindra Bank a long time back and the experience i had was quite good. The loan was completed a while back without facing any hassle, they did not made any sort of additional charges and overall i am satisfied with the services provided.

I had taken a Personal loan from HDFC Bank a while back and the loan amount was around 8,50,000. The interest rate which they had made was around 14.5% and there was some 2% of charges which they had made as processing fee. Their customer support team had also been helpful.

I have taken a personal loan in KOTAK MAHINDRA bank before 3 months ago. I expect the loan amount for for 1lakh 53 thousands but i received the amount of 1lakh 45 thousands for the duration of 3 years. The rate of interest and processing fee also high in this bank.

I have been holding my personal loan with HDFC bank from long time, the loan amount was sufficient , they gave me loan up to 10,00,000 which is very much high, they have not charged me any hidden charges, the emi i use to pay 35,152 every months on monthly basis, by October it will get finished my loan.

I had taken a Personal loan from Standard Charted Bank a while back and the process in getting this loan was quite simple. The loan amount has been fine and the interest rate has been nominal. There has been some processing charges around 500 as well.

I have purchased the personal loan 2 years back. Yes bank people approached me for the personal loan hence i accepted. They have charged me a huge interest rate and there is pre-closure option is available. Bought the loan amount of Rs. 3 lakhs and I'm not sure about the processing fee. I have chosen the tenure period of 5 years.

The overall experience in getting my personal loan from IndusInd Bank has been pretty much okay, where i did not face any difficulty in getting the loan. The process went well and the loan amount has been sufficient, the interest rate was quite nominal as well. They did not made any additional charges as well.

I have taken a personal loan from AXIS Bank a while back and the process in getting this loan was really easy, it was seamless and the loan was disbursed on the right time. The interest rate and processing charges has been nominal with them and the loan is still running.

My experience is good by taking the personal loan with the HDFC BANK for an while and they have charge nominal rate of interest up to 12.5% and even there processing fee is also nominal only, the loan amount which they have given to me was sufficient as per my requirement they have given to me and their customer support team is also very good.

I have taken a personal loan in HDFC bank for more than a year. The amount which I received from bank was sufficient for the duration of 3 years. On time i received the loan. The rate of interest is nominal in this bank. The processing fee was nominal.

The experience with Bank Bazaar has been superb and i am using the services of them for the very first time for applying my personal loan. I came to know about the services of them while searching in Google and after i applied through them they had been quite good that they explained everything clearly and had been prompt.

The process in getting my personal loan from HDFC BANK has been pretty good where the verification process has been great and there was a good coordination. The loan amount was disbursed on time and it was good but the interest rate with them had been on the higher side, the processing fee was also there and they had made some extra charges which was around 6000.

Bought my personal loan with HDFC for 2 years back. They have taken 1 month to sanctioned the loan. No particular reason for choosing this loan. They charged me a interest rate of 13% and there is no processing fee. There is a partial payment and pre-closure is available with some charges.

The experience i had with Bank Bazaar has not been that great, i am using the services of them for the very first time for getting my personal loan through them. I would suggest them to provide better offers in personal loan with lesser interest rate. I feel that the offers provided by them should be much more better.

The process in getting my Personal loan from Early Salary has been quite okay but the interest rate with them had been very high when compared with the market rate. The processing charges ahs also been high and the loan has been closed as well. Overall i am not much happy with the services provided by them.

I have taken a personal loan in ICICI bank for the past 4 years. The amount which I received from bank was sufficient as per my expectation for the duration of 3 years. The rate of interest for 12% is nominal in this bank. The charges are applicable for this loan.

The process in getting my personal loan from State Bank Of India had been pretty much good where there has not been any issues. The loan amount has been fine and the interest rate was just 12.55%. There was no additional charges which they had made and the loan is still running without facing any sort of hassle.